Recently, I went in to a trustee and was looking into proposal vs. bankruptcy. After reviewing my debt, my trustees informed me that I am better off doing a proposal being that I would be repaying close to 50% back to my creditors. I also inquired about my Visa, as I would like to be able to keep some sort of credit. I was informed by my trustee that if my card is at a zero balance, I can keep the card.
I filed in my proposal listing just my overdraft and not my visa, even though they are with the same bank, I was advised that my visa would not be effected.
I submitted my proposal a week ago, and today I find out that my Visa has been taken away from me, and I am extremely upset by this as I worked hard to pay it off so I could keep it.
I am not sure if my trustee has mislead me or is my bank in the wrong.
Please help me in figuring out what to do next.

One Response to “Misinformation?”

A licensed trustee said...

I am sorry, but in my opinion, your trustee has done you a large disservice. Regardless of whether or not your VISA had a balance, when you file a proposal you are required by law to surrender all of your credit cards to your trustee. The fact that your trustee let you keep one is frankly inappropriate. It comes as no surprise to me that the bank cancelled your card, particularly since their overdraft was included as one of your debts (again, you had no choice, the overdraft had to be listed).

If you are really upset then you may want to call the Office of the Superintendent of Bankruptcy and expres your concerns about what your trustee told you. It won’t get you your card back, but it might stop your trustee from giving anyone else the same bad advice.

If you really feel the need for a credit card, you can apply for a secured card from a number of different companies. A secured card simply means you put some money on deposit and the company sets your credit limit based on that amount. Do a Google search for companies that offer this type of card, if you’re interested.